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FM 12: Expenditure when deduction would be denied to consolidated group
or “No deductions for consolidated group expenses, except for certain interest payments”
You could also call this:

“How to treat long-term spending in a group of companies”

When you’re part of a group of companies that work together (called a consolidated group), this rule is about spending money on things that last a long time, like buildings or machines.

If your company spends money on something that would normally be counted as part of the cost of property for the whole group (if the group was just one big company), but wouldn’t be counted otherwise, this rule says you can still count it.

This means that even if your company alone wouldn’t normally count this spending, you can include it when figuring out how much the property costs for all the companies in your group.

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Next up: FM 14: Part-year financial statements

or “How to prepare financial statements for parts of a tax year when companies join or leave tax groups”
Next

Part F Recharacterisation of certain transactions
Consolidated groups of companies: Accounting generally

FM 13Capital expenditure

  1. This section applies when a company that is part of a consolidated group incurs expenditure or loss that would, treating the consolidated group as if it were 1 company, be taken into account in determining the cost of property but would not otherwise be taken into account in the absence of this section.

  2. The expenditure or loss is taken into account in determining the cost of property of companies in the consolidated group.

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